BEIJING- Iron ore futures rallied to their highest in more than a week on Monday as revived hopes of more stimulus from top consumer China boosted sentiment.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) rose 2.25 percent to 771 yuan ($105.16) a metric ton, highest since Jan. 3.
The benchmark February iron ore on the Singapore Exchange gained 2.01 percent to $99.1 a ton after touching $100.25, highest since Jan. 3, earlier in the day.
China’s central bank chief on Monday said the government will support moderately loose monetary policy to maintain ample liquidity, lifting broad investor sentiment.
This came after Reuters reported last Friday that China’s central bank will likely deploy its most aggressive monetary tactics in a decade this year in an attempt to stimulate the economy and soften the blow of impending US tariff hikes.
Pei Hao, a senior analyst at international brokerage Freight Investor Services (FIS), ascribed the ore price rise to the resonance of commodities caused by the oil price rally after the latest sanctions on Russian oil.
“In the medium term, both the upside and downside room for ore prices will be limited given that as consumers have locked prices and demand.”
